§11-15-8c. Transition rules for elimination of exemption for
materials and supplies incorporated in real
property owned by governmental entities.

(a) Generalrule. -- The expired provisions in subsection (j),
section nine of this article, which previously exempted sales of
tangible personal property to persons engaging in the activity of
contracting, pursuant to a written contract with the United States,
this state, or with a political subdivision thereof, or with a
public corporation created by the Legislature or by another
governmental entity pursuant to an act of the Legislature, for a
building or structure, or improvement thereto, or other improvement
to real property that is or will be owned and used by the
governmental entity for a governmental or proprietary purpose,
shall continue in force for:

(1) Tangible personal property purchased by a contractor on or
after the first day of October, one thousand nine hundred ninety,
in fulfillment of a written contract for contracting, as defined in
section two of this article, that was executed and legally binding
on the parties thereto on or before the fifteenth day of September,
one thousand nine hundred ninety; or in fulfillment of a written
contract entered into after said fifteenth day of September
pursuant to a written bid for contracting that was made on or
before said fifteenth day of September that was binding on the
contractor, but only to the extent that the bid is subsequently
incorporated into a written contract; and

(2) Tangible personal property purchased by a contractor on or
after the first day of October, one thousand nine hundred ninety,
for consumption or use in fulfillment of a written contract for the
construction of a new improvement to real property, the
construction or operation of which was approved by a federal or
state regulatory body prior to the fifteenth day of September, one
thousand nine hundred ninety, or pursuant to a federal grant
awarded prior to said fifteenth day of September.

(b) Renewalsandextensions. -- A renewal of any contract
shall constitute a new contract for purposes of this section, and
the date of entry into a contract renewal by the parties, the date
or dates of tender of consideration and the time of performance of
any contractual obligations under a renewed contract shall be
treated as the dates for determining application of this section to
the renewed contract. Extensions of time granted or agreed upon by
the parties to a contract for performance of the contract or for
tender of consideration under the contract shall not be treated as
contract renewals. Contracts to which such extensions apply shall
be treated under these transition rules as if the original
contractual provisions for performance and tender of consideration
remain in effect. For purposes of this section, the terms
"contract" or "contracts", and "contract renewal" or "renewal"
shall have the same meaning as defined in subsection (d), section
eight-a of this article.